Stocks lose momentum on low liquidity

Update:
August, 20/2014 - 09:07

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The benchmark VN-Index inched down 0.07 per cent to close yesterday at 604.64 points while the VN30, which tracks the top 30 shares by market value and liquidity, was down 0.24 per cent to end at 645.46 points.— Photo tygiavang

HA NOI (VNS) — Stocks on the HCM Stock Exchange failed to sustain the morning's gain as investors increased selling when the index moved towards a high of 610 points.

The benchmark VN-Index inched down 0.07 per cent to close yesterday at 604.64 points while the VN30, which tracks the top 30 shares by market value and liquidity, was down 0.24 per cent to end at 645.46 points.

Excluding shares of PV Gas (GAS), the biggest stock in term of market value, which gained 0.9 per cent in value, many large-cap stocks lost value including Masan Group (MSN), Vinamilk (VNM), Kinh Do Corporation (KDC), Hoang Anh Gia Lai Company (HAG) and Saigon Securities Inc (SSI).

FLC Group (FLC), the most active stock with 15.8 million shares, also went down 0.75 per cent to finish at VND13,200 per share

Liquidity decrease compared with the previous session with the market value falling about 30 per cent to over VND2.794 trillion (US$132.4 million) while the volume of trades totaled more than 134 million shares and fund certificates.

On the Ha Noi Stock Exchange, profit-taking activity also pushed the HNX-Index down 0.57 per cent to finish the session at 82.66 points.

According to analysts at FPT Securities Company, many investors took advantage of growing market optimism to earn profits amid fears of technical corrections. Oil and gas companies like PetroVietnam Technical Services (PVS), PetroVietnam Drilling Mud (PVC) and PetroVietnam Northern Gas (PVG) led the downturn after they made impressive gains in the previous days.